Rivian Secures $1.5B in Tax Incentives for New Georgia Plant

Electric automaker Rivian announced today that it has secured $1.5 billion in tax incentives from the state of Georgia to begin construction on its new plant outside of Atlanta.

The factory, which is projected to cost $5 billion to build, is expected to bring 7,500 jobs to its area, each paying an average of $56,000, according to Rivian. Eventually, the plant should be capable of producing up to 400,000 vehicles annually.

Considering that Irvine-based Rivian’s supply chain struggles have forced the company to scale down production to just 25,000 vehicles this year, the factory represents a massive expansion for the company and a vital piece of its future. Georgia Gov. Brian Kemp has touted the project as the “single-largest economic development project in state history.”

However, the plant’s development has proven politically divisive in the state. While Kemp has championed the project as an economic boon for the region, his opponent in the Republican primary slated for later this month, David Perdue, has painted the factory as a handout to a Californian business and a windfall for Democratic Party donor George Soros, who invested roughly $2 billion in Rivian late last year.

Fortunately for Rivian, none of these concerns are likely to stop the facility's development, with today’s announcement moving the company one step closer to breaking ground. It’s a much-needed win for the EV manufacturer, which has struggled this year after vehicle pricing changes drew the wrath (and legal action) of investors and consumers in equal measure. The Amazon-backed company, once touted as a potential market challenger to Elon Musk’s Tesla, has seen its stock decline 69% this year and is currently trading at $32 per share—a far cry from the giddy high of $172 seen shortly after its record-breaking IPO last November.